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Morning markets: Corn rises on US dry weather fears 

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Corn and wheat were both up in early Monday trading, with soybeans also recovering some value after a steady decline over recent weeks.

 

Friday trading saw the CBOT July corn contract close at $4.34 per bushel after a slow day’s trading, with many extending Thursdays’ Independence Day holiday into a longer break.

 

But it maintained the five-day recovery trend in values since the low of $4.14 per bushel reached on July 2.

 

The rise appears to be weather related - fears that hot, dry weather across the US corn belt could weigh on production prospects that are already depressed by the late plantings, due to the wet start to the season that delayed field work.

 

This is despite trade expectations that Thursday’s WASDE report will scale back the US corn exports figure.

 

“Chicago December ’19 corn has now regained about half of the fall triggered by the USDA’s surprising acreage report a couple of weeks back,” notes Tobin Gorey of Commonwealth Bank of Australia.

 

But the nearby position was trading up at $442¼ per bushel in early Monday business.

 

French heatwave warning

 

Paris maize was unchanged at €178.25 for August. The French analyst FranceAgriMer has warned that the hot weather in France last week – including a record June high of 45.9 degrees Celsius (114.6°F) - could knock crop yields as harvest approaches. This has not affected values as yet.

 

July 19 Chicago wheat closed at $5.19½ per bushel, and $525½ bushel for December. The Paris Sept 19 wheat contract was unchanged at €178.25 per tonne.

 

Mr Gorey noted that US wheat futures made some modest gains on Friday, with light trading.

 

The Paris September wheat contract was unchanged at €178.25/tonnes for September –again, FranceAgriMer’s heatwave warning has not triggered any change.

 

Monday morning saw Chicago wheat trading higher at $5.21/bu.

 

Oilseed prices fell sharply on Friday, continuing the retreat from the $9.13 per bushel soybean

futures high seen in mid-June. Nearby soy futures closed down at $8.72½ per bushel ($894½ per bushel for November).

 

But early Monday soybean values were up at $8.78½ per bushel.

 

China dispute affects Canada’s canola

 

The Canadian canola ICE Nov 19 contract fell 1.7% on Friday to Can$443 per tonne. This followed a statement from the Canola Council of Canada warning of the effect of China’s import ban on

 

Canadian canola, due to an ongoing quality dispute over a cargo. Without resolution, this could see the new crop marketing year start without Canada’s largest customer.

Paris rapeseed was unchanged at €363 per tonne for August.

 

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